0.53%
3.92%
1.32%
6.63%
36.69%
59.96%
136.12%
AI Spotlight on BRO
Company Description
Brown & Brown, Inc.markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands.It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services.
The Retail segment offers property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, loss control survey and analysis, consultancy, and claims processing services.It serves commercial, public and quasi-public entities, professional, and individual customers.The National Programs segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities.
This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products.It serves through independent agents.The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers.
The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services.The company was founded in 1939 and is headquartered in Daytona Beach, Florida.
Market Data
| Last Price | 106.02 |
| Change Percentage | 0.53% |
| Open | 104.29 |
| Previous Close | 105.46 |
| Market Cap ( Millions) | 30317 |
| Volume | 38727 |
| Year High | 114.15 |
| Year Low | 77.12 |
| M A 50 | 105.92 |
| M A 200 | 98.87 |
Financial Ratios
| FCF Yield | 3.38% |
| Dividend Yield | 0.51% |
| ROE | 16.09% |
| Debt / Equity | 6.43% |
| Net Debt / EBIDTA | -20.45% |
| Price To Book | 4.66 |
| Price Earnings Ratio | 30.18 |
| Price To FCF | 29.55 |
| Price To sales | 6.31 |
| EV / EBITDA | 23.56 |
News
- Jan -28 - Brown & Brown Q4 Earnings Top Estimates on Higher Commission and Fees
- Jan -28 - Brown & Brown, Inc. (BRO) Q4 2024 Earnings Call Transcript
- Jan -28 - Brown & Brown (BRO) Q4 Earnings and Revenues Surpass Estimates
- Jan -27 - Brown & Brown, Inc. announces fourth quarter 2024 results, including total revenues of $1.2 billion, an increase of 15.4%; Organic Revenue growth of 13.8%; diluted net income per share of $0.73; and Diluted Net Income Per Share - Adjusted of $0.86
- Jan -27 - Brown & Brown Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
- Jan -22 - Brown & Brown, Inc. announces quarterly cash dividend
- Jan -22 - Countdown to Brown & Brown (BRO) Q4 Earnings: Wall Street Forecasts for Key Metrics
- Jan -21 - L.A. Wildfires: 3 Insurance Stocks Standing Strong Amid Recovery
- Jan -13 - Brown & Brown Rises 36.9% in a Year: How Should You Play the Stock?
- Jan -06 - Brown & Brown, Inc. announces 2024 fourth-quarter earnings release and conference call dates
- Jan -03 - All 12 Dividend Aristocrats That Raised Their Dividends 10% or More in 2024
- Jan -02 - NVIDIA & 2 Other S&P 500 Momentum Stocks to Buy in 2025
- Dec -31 - The Zacks Analyst Blog Atmos Energy, Brown & Brown and Cintas
- Dec -31 - Zacks Industry Outlook Brown and Brown, Marsh & McLennan, Arthur J. Gallagher & Co and Willis Towers Watson
- Dec -30 - 3 Dividend Aristocrat Must-Haves for Your Portfolio in 2025
- Dec -30 - 4 Stocks to Watch From the Prospering Insurance Brokerage Industry
- Dec -21 - Our Top 10 Dividend Growth Stocks - December 2024
- Dec -10 - Bridge Specialty Group, LLC acquires the assets of American Risk Management Resources Network
- Dec -09 - BRO Rallies 53.6% YTD: Time to Buy the Stock for Solid Returns?
- Nov -15 - Brown & Brown, Inc. earns 2025 Military Friendly® Employer designation
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Retail
Expected Growth : 7.5 %
What the company do ?
Brown & Brown, Inc.'s Retail segment provides a range of insurance products and services to individuals and businesses, including property, casualty, and specialty insurance.
Why we expect these perspectives ?
Brown & Brown's Retail segment growth of 7.5% is driven by increasing demand for risk management solutions, expansion of existing client relationships, and strategic acquisitions. Additionally, the company's investments in digital capabilities and data analytics have enhanced its ability to provide tailored insurance solutions, further fueling growth.
Segment n°2 -> National Programs
Expected Growth : 8.5 %
What the company do ?
National Programs from Brown & Brown, Inc. offers specialized insurance programs for niche industries and professions, providing tailored coverage and risk management solutions.
Why we expect these perspectives ?
Brown & Brown's National Programs segment growth of 8.5% is driven by increasing demand for specialized insurance products, expansion of existing programs, and strategic acquisitions. Additionally, the company's investments in technology and data analytics have enhanced its ability to underwrite and manage complex risks, further fueling growth.
Segment n°3 -> Wholesale Brokerage
Expected Growth : 7.8 %
What the company do ?
Wholesale Brokerage from Brown & Brown, Inc. provides specialized insurance products and services to retail brokers and agents, connecting them with top insurance carriers.
Why we expect these perspectives ?
Brown & Brown's Wholesale Brokerage segment growth of 7.8% is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's investments in digital capabilities and data analytics have enhanced its ability to provide value-added services to clients, resulting in increased revenue and market share gains.
Segment n°4 -> Services
Expected Growth : 7.2 %
What the company do ?
Brown & Brown, Inc. offers a range of services including insurance brokerage, risk management, and employee benefits consulting to individuals and businesses.
Why we expect these perspectives ?
Brown & Brown's 7.2% growth is driven by increasing demand for risk management and insurance brokerage services, expansion into new markets, strategic acquisitions, and a strong sales force. Additionally, the company's focus on digital transformation and investments in data analytics have enhanced its operational efficiency and client engagement.
Segment n°5 -> Other
Expected Growth : 7.0 %
What the company do ?
Other from Brown & Brown, Inc. refers to the company's miscellaneous revenue streams, including interest, dividends, and other non-core business income.
Why we expect these perspectives ?
Brown & Brown's 7.0% growth in 'Other' segment is driven by increasing demand for specialty insurance products, expansion of wholesale brokerage operations, and strategic acquisitions. Additionally, the company's investments in digital capabilities and data analytics have enhanced its ability to cross-sell and upsell products, further contributing to growth.
Brown & Brown, Inc. Products
| Product Range | What is it ? |
|---|---|
| Retail Brokerage | Provides insurance brokerage services to individuals, families, and small businesses |
| National Programs | Offers specialized insurance programs for niche industries and professions |
| Wholesale Brokerage | Provides access to specialty insurance markets for hard-to-place risks |
| Services | Offers a range of services including claims management, risk management, and compliance consulting |
| MGA/MGU | Acts as a managing general agent (MGA) or managing general underwriter (MGU) for insurance carriers |
Brown & Brown, Inc.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Brown & Brown, Inc. is medium due to the presence of alternative insurance brokers and agents. However, the company's strong brand reputation and customer relationships mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is low for Brown & Brown, Inc. due to the company's diversified customer base and lack of concentration of customers. This reduces the negotiating power of individual customers.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium for Brown & Brown, Inc. due to the presence of a few large insurance carriers. However, the company's scale and diversification of suppliers mitigate this threat to some extent.
Threat Of New Entrants
The threat of new entrants is low for Brown & Brown, Inc. due to the high barriers to entry in the insurance brokerage industry, including regulatory hurdles and the need for significant capital investment.
Intensity Of Rivalry
The intensity of rivalry is high in the insurance brokerage industry, with many established players competing for market share. Brown & Brown, Inc. must continually innovate and improve its services to maintain its competitive edge.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 40.49% |
| Debt Cost | 6.29% |
| Equity Weight | 59.51% |
| Equity Cost | 7.93% |
| WACC | 7.27% |
| Leverage | 68.04% |
Brown & Brown, Inc. : Quality Control
Brown & Brown, Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| AJG | Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, … |
| PRU | Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through eight segments: PGIM, Retirement, … |
| MMC | Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk … |
| MTB | M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services … |
| TFC | Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Truist
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M&T Bank
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Prudential Financial
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4
Brown & Brown
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5
Marsh McLennan
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6
